Andrew McCain's now former bank is suing the state of Nevada

[rainbow4321]

Now...I will be the first to admit that I know little about the banking industry. But, IMHO, it is not a good thing to be on the auditing committee of a bank that may have been involved in allegedly illegal accounts. Especially if there seems to be a trial/lawsuit looming.

http://asternglance.com/2008/07/01/silver-state-bank-sues-state-of-nevada-lvrj/

July 1, 2008

Silver State Bank which held bank accounts for failed Southwest Exchange of Henderson is suing the state of Nevada, seeking to recover damages related to lawsuits over Southwest Exchange.

Southwest Exchange, which had accounts at Silver State Bank, closed in January 2007 owning $98 million to real estate investors and is in receivership.

Attorneys for investors who lost money when Southwest Exchange failed are suing multiple defendants based on claims the defendants have some liability for the losses.

<snip>

The division should have known that Southwest Exchange’s bank accounts were not set up as escrow accounts, the lawsuit said. In addition, the lawsuit said the division should have known that Southwest Exchange bank accounts were illegal because they didn’t require a client’s signature prior to diversion of a client’s money from the bank account.


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http://vdsa135w.rttnews.com/Scroller/DispScrollerHL.aspx?ID=665355&RecordType=ART

Andrew McCain previously served as a director of Choice Bank in Scottsdale, Arizona from 2006 to April 1, 2008 when Choice Bank merged into Silver State Bank. McCain had been appointed to the Boards of the Company and Silver State Bank in February, 2008 and had served on the Audit Committee. Andrew McCain has recently been appointed Chairman of the Greater Phoenix Chamber of Commerce, effective this month.

[samdogmom]

1. Well...That explains why he resigned his board position! Go figure!

I'm waiting for more "news" to surface!

[rainbow4321]

4. Bank claims it "didn't know money was being stolen from accounts"

Also, in the OP:


Silver State argued that it is exempt from any liability in the Southwest Exchange case under the Uniform Fiduciaries Act, in part because it didn’t know client money was being stolen from the accounts.

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This ALONE should send up red flags....

[susu369]

2. Big kick

:popcorn:

Stay tuned.....

[rainbow4321]

3. Thanks :> More info on the bank's response to the lawsuit

http://sec.edgar-online.com/2008/05/15/0001193125-08-116564/Section13.asp

We believe the allegations against us in these lawsuits are without merit and we intend to vigorously defend these and any other future lawsuits pertaining to this matter. However, if we are not dismissed from these lawsuits or are included in other litigation regarding Southwest Exchange, our employees, officers and directors may be required to expend substantial amounts of time in connection with such litigations which will prevent them from concentrating on our normal business. In addition, we may be required to spend substantial sums on legal representation in connection with any such litigation until the claims are dismissed

[ChimpersMcSmirkers]

5. This is going to get good. Watch.

[burythehatchet]

6. Fully grown turd drops from McAnus

[rainbow4321]

7. Guess he didn't learn from his daddy's mistakes...

Would have loved to been a fly on the wall when the McLame camp got the phone call on whatever is going down with the bank.